Six new companies are set to enter Florida’s property insurance market, according to Mark Friedlander of the Insurance Information Institute (Triple-I).
In an interview with local news network WPTV, Friedlander said all six companies have been vetted by state regulators and are considered financially stable by rating agencies.
The new companies are Tailrow Insurance Company, Mainsail Insurance Company, Orion 180 Insurance Company, Orion 180 Select Insurance Company, Orange Insurance Exchange, and Condo Owners Reciprocal Insurance.
According to Friedlander, many of these companies had waited until 2024 to enter Florida after the passage of litigation reforms and the conclusion of the 2023 hurricane season.
He also noted that some companies are still initiating their operations and that there is no definitive schedule for when they will start writing policies.
“We do have confirmation from some agents that Orange Insurance has opened for business," Friedlander told WPTV. “They are writing policies and have started to appoint independent agents across the state.”
Overall, Friedlander said the entry of new companies is “very positive for the Florida insurance marketplace and consumers,” adding that they will “give homeowners a choice now on shopping for coverage.”
Florida’s property insurance market has been suffering from a period of instability amid growing climate risk, rising litigation costs, and several insurer insolvencies. The tough market has made it difficult for homeowners to find affordable coverage, leading to increased pressure on Citizens, the state’s insurer of last resort.
Recent years have seen Citizens become the largest property insurer in Florida, responsible for 18% of the market. It currently holds over a million policies, although it is looking to offload a significant portion of these policies to private insurers.
Florida has also been finding ways to rehabilitate the private market, including passing legislation targeting lawsuit abuse.
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